Marty received an offer for an injury settlement of 100000, Finance Basics

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Marty received an offer for an injury settlement of 100000

Question: Marty received an offer for an injury settlement of $10,0000 payable in three years. He wants to know what the present value of the injury settlement is if his opportunity cost is 5%. (The opportunity cost is the interest rate in this problem). What if the opportunity cost is 8%? What if it is 12%?

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Finance Basics: Marty received an offer for an injury settlement of 100000

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